U.S. stocks rally amid eased U.S.-China trade tensions

U.S. stocks closed higher on Monday as easing U.S.-China trade tensions fueled optimism in the market.

Traders work at the New York Stock Exchange in New York, the United States, on May 21, 2018. U.S. stocks closed higher on Monday. The Dow rose 1.21 percent to 25,013.29, and the S&P 500 rose 0.74 percent to 2,733.01, while the Nasdaq increased 0.54 percent to 7,394.04. (Xinhua/Wang Ying)

U.S. stocks closed higher on Monday as easing U.S.-China trade tensions fueled optimism in the market.

The Dow rose 1.21 percent to 25,013.29, and the S&P 500 rose 0.74 percent to 2,733.01, while the Nasdaq increased 0.54 percent to 7,394.04.

China and the United States issued a joint statement over the weekend, vowing not to launch a trade war against each other.

U.S. Treasury Secretary Steven Mnuchin said on Sunday that the United States and China have reached a deal on a "very important" framework concerning their economic and trade ties, and the two sides have agreed to put a possible trade war on hold.

He added that the two sides will continue with their communications on trade issues.